I sold the business with (Inventory at cost $50000), I add this number in Cost of Good sold & Ending inventory is Zero, Now Where I input the sale of inventory

Forum|Forum|6 years ago
December 7, 2019
3 replies
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Lacerte Tax

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Best answer by sjrcpa

The same place you would put sales of inventory in the ordinary course of business. Line 1.

sjrcpaAnswer

Level 15

The same place you would put sales of inventory in the ordinary course of business. Line 1.

The more I know the more I don’t know.

George4Tacks

Level 15

Don't forget to also file the 8594, if required

Answers are easy. Questions are hard!

C

CMS_VA_CPA

Level 4

It certainly goes in Income. I would list it as Other Income, however, noting Bulk Sale of Inventory in order to clarify the sale to the Business License people (especially if the Business License is based on sales) and the sales tax people (especially if the business normally sells at retail) since a Bulk Sale of inventory should not affect either business license fees or retail sales tax.

And I would think, as George highlights, that a Form 8594 would be required if you "sold the business".

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